Sunday, July 15, 2007

European Bonds May Fall as Inflation Report Points to Interest-Rate Rise

(Bloomberg) -- European government bonds may decline
on speculation a report today will show inflation held near the
European Central Bank's target last month, boosting the case for
higher interest rates.

The European Union will probably say consumer prices in the
13-nation euro region increased 1.9 percent in June from a year
earlier, the same as in May, according to economists in a
Bloomberg survey. ECB policy makers last week said benchmark
borrowing costs remain supportive of economic growth.


Read more at Bloomberg Bonds News

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